As a franchisor, your franchisees convey an accurate portrayal of your performance, the quality of your franchise package and a valuable marketing channel through word of mouth and often social media platforms. If a franchisee is dissatisfied with the level of support and the standard of your franchise offering it will often be reflected in conversations with prospective franchisees, other individuals in the market or via platforms such as Twitter or Facebook. Such coverage can have a detrimental impact on the reputation of your franchise, your ability to convert prospective franchisees and upon the motivation of your existing franchisees.
Using professional territory mapping solutions demonstrate that the franchisor has invested in the creation of commercially balanced territories that contain the recommended figure of commercial opportunity. In the knowledge that your territory network has been professionally created, you have shown your commitment and involvement in your franchisees future, instilling confidence in you and your franchise offering. In addition, you can distinguish yourself amongst other franchisors choosing to adopt the low-cost approaches with undesirable territories, but you have taken an active approach to developing a healthy relationship with your franchisees.
According to the Franchise Survey (2010, pp.57) and the Natwest/BFA Survey (2011, pp.49) franchisee and franchisor relationship satisfaction scores correlate strongly with profitability levels, also continued support and guidance from franchisors to develop their businesses is a key selling point to many new franchisees. So why stop supporting a franchisee when they come on-board? Continued support and guidance throughout your franchisees development will create strong relationships that last, and after all, their success is your success.
By retaining your existing franchisees and promoting their success it is likely that when they are ready to expand, they will look to purchase another area or areas from you. Not only are they reliable and have proven themselves as a successful franchisee, there are no marketing costs or active searching costs involved.